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    Afghanistan(1978-2012) AnAdvantage or Curse for PakistanEconomy

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    Introduction to Afghanistan Afghanistan is located between Central Asia, South Asia

    and the Middle East

    It neighbors Iran, Pakistan, Uzbekistan, Tajikistan,Turkmenistan and China

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    Recession in economy The countrys near-total dependence on aid. More than

    90 percent of the national budget comes from foreign

    donations. Much of the Afghan governments revenue is derived

    from American military and civilian spending.

    In last some year Income per person in Afghanistan is

    $528 a year.

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    Rise in economy The economy of Afghanistan has improved since 2002

    due to the foreign aid and investment

    Improvements in agricultural production Afghanistan still remains one of the poorest and least

    developed countries in the world that is highlydependent on foreign aid

    Now the capita per income lies $1000 The Karzai administration along with international

    donors have remained committed to improving accessto these basic necessities by prioritizing infrastructuredevelopment, education, housing development, jobsprograms, medical care, and economic reform

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    MAJOR ECONOMIC INDICATORS GDP: $29.99 billion

    Per capita Income: $1000

    Growth rate: 7.1%

    Labor force: 15 million

    Inflation rate: 7.7%

    Unemployment: 36%

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    GDP Composition

    0

    5

    10

    15

    20

    25

    3035

    40

    Services Industry Agriculture

    GDP

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    Per capita income

    750

    800

    850

    900

    950

    1000

    1050

    2009 2010 2011

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    Major Export Partners

    0

    5

    10

    15

    20

    25

    30

    Percentage

    india

    pakistan

    USA

    Turkmenistan

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    Major Import Partners

    0

    5

    10

    15

    20

    25

    30

    Pakistan

    USA

    India

    Russia

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    Major Export Items Opium

    Fruits and Nuts

    Hand woven carpets

    Wool

    Cotton

    Precious and semi precious gems

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    Major import items Food

    Textile

    Petroleum products

    Machinery

    Tea

    Synthetic fibres

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    Relationship with Pakistan Very close yet tense relationship

    Ups and downs have been seen

    The Pakhtunistan issue, the Soviet union in the80s, Pakistans close relationship with the

    Taliban and the terrorist attacks of 9/11 have

    frequently affected the relationship The two countries share a 2500 km long border

    known as The Durand Line

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    Impact on Pakistan Smuggling of food items

    Unauthorized entry of weapons and militants

    Shifting of refuges in Pakistan

    Unsocial activities of militant throughAfghanistan in Pakistan

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    Impact on Pakistan Pakistan found the new target market for

    exporting like petroleum products

    Import of different items

    Legal cheap labour from Afghanistan

    Pakistan being the nearest country so it can

    strong hold the afghan market as compared toothers

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    Conclusion In conclusion we can say that Afghanistan has

    had both negative and positive impact on the

    Pakistani economy after the war. We have benefited from cheap labour and a

    new market full of opportunities. On the other hand we have been harmed due to

    the security situation in Afghanistan which hasspilled over into Pakistan causing terrorism andmilitancy to rise and effect the economicgrowth of Pakistan.

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    Thank you.